Security trust acquisition or surrender exemption (s. 121) toolkit
This toolkit brings together everything you need to know about self assessing trust acquisitions or surrenders for security trusts.
Under section 121 of the Duties Act 2001 the acquisition or surrender of an interest in a security trust is exempt from transfer duty in commercial arrangements where:
- the trust holds the securities and typically operates as a lender
- financiers participate in the trust rather than each holding their own security.
The exemption applies to transactions involving security trusts where:
- a member joins or exits the security trust as a beneficiary, or their interest varies
- the dutiable property of the trust comprises only existing rights of the holder of a mortgage, charge, bill of sale or other security over dutiable property in Queensland
- the trustee holds the rights for the benefit of the beneficiaries of the trust who have provided, or will provide, funds to the trust.
The exemption is not concerned with trust acquisitions or trust surrenders of mortgage-backed securities or other securitisation schemes.
As a registered self assessor, if you determine this exemption will apply to a transaction, you must assess it in OSRconnect.
Assessing a security trust acquisition or surrender exemption
Use the section 121 security trusts interactive help to determine if you should apply this exemption to a transaction.
You can also see our step-by-step procedure for applying this exemption in OSRconnect.
Read our endorsing examples if you are unsure how to stamp the documents for this exemption.
Records you need to keep
For this type of transaction, you must keep:
- a completed dutiable transaction statement (Form D2.2)
- a copy of the trust deed for the syndicate
- a copy of any other trust deed document.
Find out more about your record-keeping obligations.
- Read the public ruling on security trusts (DA121.1).
- Refer to Chapter 2 Part 13 of the Duties Act 2001 for exemptions for transfer duty.
- Read the transfer duty rates or use the transfer duty calculator to work out a duty liability.
- Get help using OSRconnect.
- View the list of approved transactions for self assessors.
- Last reviewed: 20 Mar 2019
- Last updated: 10 Nov 2016
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